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Savings and Investments thread
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I'm not the expert, but Page 8 is the calculation for surplus income, top half is income, bottom expenditure, last two fields are 'surplus income' and gifts made out of said surplus income. No indication that you don't have to put down one off expenditure?robinofottershaw said:
Yes, you have mentioned that before but I have seen guidance that indicates one-off capital expenditures do not need to be included with normal expenditures in the surplus income calculations. And from memory, I don’t believe there is anywhere on page 8 of IHT 403 form to include capital expenditures within the surplus income calculation.Rob7Lee said:
You do need to keep very good records, you also need to show that you have not used/didn’t any capital. Any capital expenditure will reduce your ‘surplus’ income £ for £robinofottershaw said:
Yes, am fully clued up on the annual gifting allowance and potential for exposure to IHT. However, I am making use of the “normal expenditure out of income” exemption for IHT. Periodically you see articles in the financial pages of the newspapers reminding readers of this useful tax exemption.SE9toDA2 said:@robinofottershaw are you aware that your annual gifting allowance to grandchildren/ others is 3k?So potentially your estate is liable for IHT on the other 9k you are gifting if you pass within 7 years of making the gift.
I have a spreadsheet going back 20+ years which mirrors Page 8 of the IHT 403 Inheritance Form. This details all my one off lump sums gifted to my 4 sons towards house deposits and other things, most of which were longer than 7 years ago, therefore not exposed to IHT.
The spreadsheet also details all my contributions towards my grandchildren’s Junior ISAs, which with 3 of them now amounts to just over £13K per annum, which in theory could be exposed to IHT if I pass within 7 years of the gifting.
However, I can demonstrate that I can make this regular £13k expenditure out of my normal income (i.e. pensions, interest income and dividends), without affecting my standard of living. In IHT 403 you have to list your sources of income and list your regular expenditures, giving you a net surplus income. You also list your annual gifts, e.g. the £13k to grandchildren less the £3k annual gifting allowance, effectively an annual net gifting of £10K. As long as I can demonstrate that my regular income less regular expenditures is more than the £10K of gifts, there is no exposure to IHT, i.e. the 7 year rule is irrelevant.
Every year after I complete my annual tax return I add a column to this spreadsheet for that tax year just ended and input that year's income,, expenditure and gifts. I file a copy of the updated spreadsheet with my will in order my executors have all the details they would need to complete the IHT forms relating to gifting.
I suspect this IHT exemption is not known or used as much as it might be, but it is extremely useful. I think you need to be meticulous in your record keeping. There is also guidance regarding whether or not HMRC would require large one-off expenditures (eg a car purchase funded out of savings) to be reflected within annual normal expenditures (the answer is no, a car purchase would be regarded as a one-off capital cost, rather than a normal income-based expense).
Regardless I am fortunate to still be able to cover these gift contributions to grandchildrens ISAs whether capex is included or not. I guess you should discuss with a tax advisor if need be.
That aside I've often thought about this and in relation to a pension being in drawdown, in that you can drawdown different amounts each year so income is not set.0 -
Rob7Lee said:
I'm not the expert, but Page 8 is the calculation for surplus income, top half is income, bottom expenditure, last two fields are 'surplus income' and gifts made out of said surplus income. No indication that you don't have to put down one off expenditure?robinofottershaw said:
Yes, you have mentioned that before but I have seen guidance that indicates one-off capital expenditures do not need to be included with normal expenditures in the surplus income calculations. And from memory, I don’t believe there is anywhere on page 8 of IHT 403 form to include capital expenditures within the surplus income calculation.Rob7Lee said:
You do need to keep very good records, you also need to show that you have not used/didn’t any capital. Any capital expenditure will reduce your ‘surplus’ income £ for £robinofottershaw said:
Yes, am fully clued up on the annual gifting allowance and potential for exposure to IHT. However, I am making use of the “normal expenditure out of income” exemption for IHT. Periodically you see articles in the financial pages of the newspapers reminding readers of this useful tax exemption.SE9toDA2 said:@robinofottershaw are you aware that your annual gifting allowance to grandchildren/ others is 3k?So potentially your estate is liable for IHT on the other 9k you are gifting if you pass within 7 years of making the gift.
I have a spreadsheet going back 20+ years which mirrors Page 8 of the IHT 403 Inheritance Form. This details all my one off lump sums gifted to my 4 sons towards house deposits and other things, most of which were longer than 7 years ago, therefore not exposed to IHT.
The spreadsheet also details all my contributions towards my grandchildren’s Junior ISAs, which with 3 of them now amounts to just over £13K per annum, which in theory could be exposed to IHT if I pass within 7 years of the gifting.
However, I can demonstrate that I can make this regular £13k expenditure out of my normal income (i.e. pensions, interest income and dividends), without affecting my standard of living. In IHT 403 you have to list your sources of income and list your regular expenditures, giving you a net surplus income. You also list your annual gifts, e.g. the £13k to grandchildren less the £3k annual gifting allowance, effectively an annual net gifting of £10K. As long as I can demonstrate that my regular income less regular expenditures is more than the £10K of gifts, there is no exposure to IHT, i.e. the 7 year rule is irrelevant.
Every year after I complete my annual tax return I add a column to this spreadsheet for that tax year just ended and input that year's income,, expenditure and gifts. I file a copy of the updated spreadsheet with my will in order my executors have all the details they would need to complete the IHT forms relating to gifting.
I suspect this IHT exemption is not known or used as much as it might be, but it is extremely useful. I think you need to be meticulous in your record keeping. There is also guidance regarding whether or not HMRC would require large one-off expenditures (eg a car purchase funded out of savings) to be reflected within annual normal expenditures (the answer is no, a car purchase would be regarded as a one-off capital cost, rather than a normal income-based expense).
Regardless I am fortunate to still be able to cover these gift contributions to grandchildrens ISAs whether capex is included or not. I guess you should discuss with a tax advisor if need be.
That aside I've often thought about this and in relation to a pension being in drawdown, in that you can drawdown different amounts each year so income is not set.This A.J. Bell guide is quite helpful. It indicates that “normal expenditure” wouldn’t necessarily include one-off home improvements, or a new car every 10 years (?) but of course regular monthly car payments would be included. Clearly, detailed record keeping is required in order your executors can clearly demonstrate to HMRC that you were able to give these gifts without impacting your normal standard of living. I have seen similar advice elsewhere.https://www.investcentre.co.uk/sites/default/files/AJBIC_IHT_planning_gifts_out_of_income_adviser_guide.pdf
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Part of the issue is, as far as I’ve found anyway, there is no 100% clear guidance from HMRC.robinofottershaw said:Rob7Lee said:
I'm not the expert, but Page 8 is the calculation for surplus income, top half is income, bottom expenditure, last two fields are 'surplus income' and gifts made out of said surplus income. No indication that you don't have to put down one off expenditure?robinofottershaw said:
Yes, you have mentioned that before but I have seen guidance that indicates one-off capital expenditures do not need to be included with normal expenditures in the surplus income calculations. And from memory, I don’t believe there is anywhere on page 8 of IHT 403 form to include capital expenditures within the surplus income calculation.Rob7Lee said:
You do need to keep very good records, you also need to show that you have not used/didn’t any capital. Any capital expenditure will reduce your ‘surplus’ income £ for £robinofottershaw said:
Yes, am fully clued up on the annual gifting allowance and potential for exposure to IHT. However, I am making use of the “normal expenditure out of income” exemption for IHT. Periodically you see articles in the financial pages of the newspapers reminding readers of this useful tax exemption.SE9toDA2 said:@robinofottershaw are you aware that your annual gifting allowance to grandchildren/ others is 3k?So potentially your estate is liable for IHT on the other 9k you are gifting if you pass within 7 years of making the gift.
I have a spreadsheet going back 20+ years which mirrors Page 8 of the IHT 403 Inheritance Form. This details all my one off lump sums gifted to my 4 sons towards house deposits and other things, most of which were longer than 7 years ago, therefore not exposed to IHT.
The spreadsheet also details all my contributions towards my grandchildren’s Junior ISAs, which with 3 of them now amounts to just over £13K per annum, which in theory could be exposed to IHT if I pass within 7 years of the gifting.
However, I can demonstrate that I can make this regular £13k expenditure out of my normal income (i.e. pensions, interest income and dividends), without affecting my standard of living. In IHT 403 you have to list your sources of income and list your regular expenditures, giving you a net surplus income. You also list your annual gifts, e.g. the £13k to grandchildren less the £3k annual gifting allowance, effectively an annual net gifting of £10K. As long as I can demonstrate that my regular income less regular expenditures is more than the £10K of gifts, there is no exposure to IHT, i.e. the 7 year rule is irrelevant.
Every year after I complete my annual tax return I add a column to this spreadsheet for that tax year just ended and input that year's income,, expenditure and gifts. I file a copy of the updated spreadsheet with my will in order my executors have all the details they would need to complete the IHT forms relating to gifting.
I suspect this IHT exemption is not known or used as much as it might be, but it is extremely useful. I think you need to be meticulous in your record keeping. There is also guidance regarding whether or not HMRC would require large one-off expenditures (eg a car purchase funded out of savings) to be reflected within annual normal expenditures (the answer is no, a car purchase would be regarded as a one-off capital cost, rather than a normal income-based expense).
Regardless I am fortunate to still be able to cover these gift contributions to grandchildrens ISAs whether capex is included or not. I guess you should discuss with a tax advisor if need be.
That aside I've often thought about this and in relation to a pension being in drawdown, in that you can drawdown different amounts each year so income is not set.This A.J. Bell guide is quite helpful. It indicates that “normal expenditure” wouldn’t necessarily include one-off home improvements, or a new car every 10 years (?) but of course regular monthly car payments would be included. Clearly, detailed record keeping is required in order your executors can clearly demonstrate to HMRC that you were able to give these gifts without impacting your normal standard of living. I have seen similar advice elsewhere.https://www.investcentre.co.uk/sites/default/files/AJBIC_IHT_planning_gifts_out_of_income_adviser_guide.pdf
for instance if you usually buy a car every 5 years, then is that ‘normal’ expenditure….? Why paying monthly rather than outright changes it? Is home maintenance (ie a new roof) normal expenditure? It’s just very unclear and you’re leaving it to your estate execs to fill out the form and find out post death.
I guess worst case scenario you fall fowl and tax is due, nothing lost by trying in that instance…..
of course the one very clear part is the 7 year rule, but that’s not necessarily easy to plan for - do I need money to live to 80 or 100 and so on.1 -
The idea is that you are not giving away wealth if it comes out of income. The "natural expenditure" is just a means of showing the excess between income & outgoings. Really used to show that giving your children/ grandchildren a few hundred a month isnt depleting your assets. If you can show that your assets haven't reduced over the years because you have given money to your beneficiaries then thsts all ok.Rob7Lee said:
Part of the issue is, as far as I’ve found anyway, there is no 100% clear guidance from HMRC.robinofottershaw said:Rob7Lee said:
I'm not the expert, but Page 8 is the calculation for surplus income, top half is income, bottom expenditure, last two fields are 'surplus income' and gifts made out of said surplus income. No indication that you don't have to put down one off expenditure?robinofottershaw said:
Yes, you have mentioned that before but I have seen guidance that indicates one-off capital expenditures do not need to be included with normal expenditures in the surplus income calculations. And from memory, I don’t believe there is anywhere on page 8 of IHT 403 form to include capital expenditures within the surplus income calculation.Rob7Lee said:
You do need to keep very good records, you also need to show that you have not used/didn’t any capital. Any capital expenditure will reduce your ‘surplus’ income £ for £robinofottershaw said:
Yes, am fully clued up on the annual gifting allowance and potential for exposure to IHT. However, I am making use of the “normal expenditure out of income” exemption for IHT. Periodically you see articles in the financial pages of the newspapers reminding readers of this useful tax exemption.SE9toDA2 said:@robinofottershaw are you aware that your annual gifting allowance to grandchildren/ others is 3k?So potentially your estate is liable for IHT on the other 9k you are gifting if you pass within 7 years of making the gift.
I have a spreadsheet going back 20+ years which mirrors Page 8 of the IHT 403 Inheritance Form. This details all my one off lump sums gifted to my 4 sons towards house deposits and other things, most of which were longer than 7 years ago, therefore not exposed to IHT.
The spreadsheet also details all my contributions towards my grandchildren’s Junior ISAs, which with 3 of them now amounts to just over £13K per annum, which in theory could be exposed to IHT if I pass within 7 years of the gifting.
However, I can demonstrate that I can make this regular £13k expenditure out of my normal income (i.e. pensions, interest income and dividends), without affecting my standard of living. In IHT 403 you have to list your sources of income and list your regular expenditures, giving you a net surplus income. You also list your annual gifts, e.g. the £13k to grandchildren less the £3k annual gifting allowance, effectively an annual net gifting of £10K. As long as I can demonstrate that my regular income less regular expenditures is more than the £10K of gifts, there is no exposure to IHT, i.e. the 7 year rule is irrelevant.
Every year after I complete my annual tax return I add a column to this spreadsheet for that tax year just ended and input that year's income,, expenditure and gifts. I file a copy of the updated spreadsheet with my will in order my executors have all the details they would need to complete the IHT forms relating to gifting.
I suspect this IHT exemption is not known or used as much as it might be, but it is extremely useful. I think you need to be meticulous in your record keeping. There is also guidance regarding whether or not HMRC would require large one-off expenditures (eg a car purchase funded out of savings) to be reflected within annual normal expenditures (the answer is no, a car purchase would be regarded as a one-off capital cost, rather than a normal income-based expense).
Regardless I am fortunate to still be able to cover these gift contributions to grandchildrens ISAs whether capex is included or not. I guess you should discuss with a tax advisor if need be.
That aside I've often thought about this and in relation to a pension being in drawdown, in that you can drawdown different amounts each year so income is not set.This A.J. Bell guide is quite helpful. It indicates that “normal expenditure” wouldn’t necessarily include one-off home improvements, or a new car every 10 years (?) but of course regular monthly car payments would be included. Clearly, detailed record keeping is required in order your executors can clearly demonstrate to HMRC that you were able to give these gifts without impacting your normal standard of living. I have seen similar advice elsewhere.https://www.investcentre.co.uk/sites/default/files/AJBIC_IHT_planning_gifts_out_of_income_adviser_guide.pdf
for instance if you usually buy a car every 5 years, then is that ‘normal’ expenditure….? Why paying monthly rather than outright changes it? Is home maintenance (ie a new roof) normal expenditure? It’s just very unclear and you’re leaving it to your estate execs to fill out the form and find out post death.
I guess worst case scenario you fall fowl and tax is due, nothing lost by trying in that instance…..
of course the one very clear part is the 7 year rule, but that’s not necessarily easy to plan for - do I need money to live to 80 or 100 and so on.
If your income is £2k per month & you give your kids £20k each year then it's not coming from income. If your income is £5k per month & you give them £20k each year then it's more plausible......hence why you need to keep records.1 -
Maybe I'm overthinking it, but have learned over the years with HMRC it's normally very black or white, there is no grey!golfaddick said:
The idea is that you are not giving away wealth if it comes out of income. The "natural expenditure" is just a means of showing the excess between income & outgoings. Really used to show that giving your children/ grandchildren a few hundred a month isnt depleting your assets. If you can show that your assets haven't reduced over the years because you have given money to your beneficiaries then thsts all ok.Rob7Lee said:
Part of the issue is, as far as I’ve found anyway, there is no 100% clear guidance from HMRC.robinofottershaw said:Rob7Lee said:
I'm not the expert, but Page 8 is the calculation for surplus income, top half is income, bottom expenditure, last two fields are 'surplus income' and gifts made out of said surplus income. No indication that you don't have to put down one off expenditure?robinofottershaw said:
Yes, you have mentioned that before but I have seen guidance that indicates one-off capital expenditures do not need to be included with normal expenditures in the surplus income calculations. And from memory, I don’t believe there is anywhere on page 8 of IHT 403 form to include capital expenditures within the surplus income calculation.Rob7Lee said:
You do need to keep very good records, you also need to show that you have not used/didn’t any capital. Any capital expenditure will reduce your ‘surplus’ income £ for £robinofottershaw said:
Yes, am fully clued up on the annual gifting allowance and potential for exposure to IHT. However, I am making use of the “normal expenditure out of income” exemption for IHT. Periodically you see articles in the financial pages of the newspapers reminding readers of this useful tax exemption.SE9toDA2 said:@robinofottershaw are you aware that your annual gifting allowance to grandchildren/ others is 3k?So potentially your estate is liable for IHT on the other 9k you are gifting if you pass within 7 years of making the gift.
I have a spreadsheet going back 20+ years which mirrors Page 8 of the IHT 403 Inheritance Form. This details all my one off lump sums gifted to my 4 sons towards house deposits and other things, most of which were longer than 7 years ago, therefore not exposed to IHT.
The spreadsheet also details all my contributions towards my grandchildren’s Junior ISAs, which with 3 of them now amounts to just over £13K per annum, which in theory could be exposed to IHT if I pass within 7 years of the gifting.
However, I can demonstrate that I can make this regular £13k expenditure out of my normal income (i.e. pensions, interest income and dividends), without affecting my standard of living. In IHT 403 you have to list your sources of income and list your regular expenditures, giving you a net surplus income. You also list your annual gifts, e.g. the £13k to grandchildren less the £3k annual gifting allowance, effectively an annual net gifting of £10K. As long as I can demonstrate that my regular income less regular expenditures is more than the £10K of gifts, there is no exposure to IHT, i.e. the 7 year rule is irrelevant.
Every year after I complete my annual tax return I add a column to this spreadsheet for that tax year just ended and input that year's income,, expenditure and gifts. I file a copy of the updated spreadsheet with my will in order my executors have all the details they would need to complete the IHT forms relating to gifting.
I suspect this IHT exemption is not known or used as much as it might be, but it is extremely useful. I think you need to be meticulous in your record keeping. There is also guidance regarding whether or not HMRC would require large one-off expenditures (eg a car purchase funded out of savings) to be reflected within annual normal expenditures (the answer is no, a car purchase would be regarded as a one-off capital cost, rather than a normal income-based expense).
Regardless I am fortunate to still be able to cover these gift contributions to grandchildrens ISAs whether capex is included or not. I guess you should discuss with a tax advisor if need be.
That aside I've often thought about this and in relation to a pension being in drawdown, in that you can drawdown different amounts each year so income is not set.This A.J. Bell guide is quite helpful. It indicates that “normal expenditure” wouldn’t necessarily include one-off home improvements, or a new car every 10 years (?) but of course regular monthly car payments would be included. Clearly, detailed record keeping is required in order your executors can clearly demonstrate to HMRC that you were able to give these gifts without impacting your normal standard of living. I have seen similar advice elsewhere.https://www.investcentre.co.uk/sites/default/files/AJBIC_IHT_planning_gifts_out_of_income_adviser_guide.pdf
for instance if you usually buy a car every 5 years, then is that ‘normal’ expenditure….? Why paying monthly rather than outright changes it? Is home maintenance (ie a new roof) normal expenditure? It’s just very unclear and you’re leaving it to your estate execs to fill out the form and find out post death.
I guess worst case scenario you fall fowl and tax is due, nothing lost by trying in that instance…..
of course the one very clear part is the 7 year rule, but that’s not necessarily easy to plan for - do I need money to live to 80 or 100 and so on.
If your income is £2k per month & you give your kids £20k each year then it's not coming from income. If your income is £5k per month & you give them £20k each year then it's more plausible......hence why you need to keep records.
In your examples I agree, but it's the nuances, I think it's further complicated by drawdown pensions now also, it was easier when you had an annuity or final salary and therefore a set income, but I'm certainly not intending or expecting to draw down exactly the same amount every single year.
There's also no point NOT depleting your assets, I've saved (whether in pension, ISA's, Gold or cash etc) for my retirement so I absolutely will be spending asset, that was the whole point of me doing so, why shouldn't I do that and be able to do that and give a bit to my kids (even in their late teens/early 20's the government were expecting me to fund them through Uni). I can't even really put much into pension anymore (well I can but it'd be taxed, so little point).
A short story of an old boy I worked with some years back, he had prostate cancer with at that time around 4-6 years he believed (he actually survived nearly 9), his father lived to a great age of 101, left a sizeable estate (a few million) most of which was taxed at 40%. Brian (the chap I worked with) died around 5 years later, he'd never married and had no children. So the broadly 60% he got of his dad's estate (which of course he never spent) was taxed again, arguably all of it as he'd have personally had more than £325k. So from his father's estate HMRC ended up with about 65% of it. He didn't have any siblings nor of course any nieces and nephews so was I believe leaving his estate to a couple of his cousins, no doubt a similar age so the tax man probably had a third bite at it at some-point!
I've never been a fan of death taxes as you can tell and I very much intend (legally) to avoid my estate paying any or as little as humanly possible! Guernsey here we come :-)
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I recently saw some guidance that the 25 per cent you can take tax free from your pension can now be counted as part of income. Therefore whichever part of it is above 'normal' expenditure can also be gifted free of IHT.1
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An interesting FT article about the fact earnings are still outpacing valuations.1
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I would be interested in where you saw this guidance as that is not my experience or knowledge in this area.Southbank said:I recently saw some guidance that the 25 per cent you can take tax free from your pension can now be counted as part of income. Therefore whichever part of it is above 'normal' expenditure can also be gifted free of IHT.
It might depend of you are taking it as income (ie, on a monthly basis) or as a one off / ad hoc lump sum.0 -
I think that’s if you take 25% of every drawdown tax free, not one lump.Southbank said:I recently saw some guidance that the 25 per cent you can take tax free from your pension can now be counted as part of income. Therefore whichever part of it is above 'normal' expenditure can also be gifted free of IHT.0 -
FTSE100 had a bad afternoon. Was at 10350 just before 3pm but then fell over 100 points to finish at 10227.
3 weeks until the end of the competition and anyone between 10000 & 10600 is in with a shout.1 -
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Might just be a good time to transfer my pension…0
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US no better, might be buying some back in tomorrow!golfaddick said:FTSE100 had a bad afternoon. Was at 10350 just before 3pm but then fell over 100 points to finish at 10227.
3 weeks until the end of the competition and anyone between 10000 & 10600 is in with a shout.0 -
The S&P fell despite shares in a lot of decent companies on that index havng a good day. But Big Tech didnt. S&P, Not for me, I’m buying gilts at a discount (partly to keep HMRC away from my “estate”, admittedly)Rob7Lee said:
US no better, might be buying some back in tomorrow!golfaddick said:FTSE100 had a bad afternoon. Was at 10350 just before 3pm but then fell over 100 points to finish at 10227.
3 weeks until the end of the competition and anyone between 10000 & 10600 is in with a shout.0 -
As long as you bought S&P on a non UK platform you'd be OK no?PragueAddick said:
The S&P fell despite shares in a lot of decent companies on that index havng a good day. But Big Tech didnt. S&P, Not for me, I’m buying gilts at a discount (partly to keep HMRC away from my “estate”, admittedly)Rob7Lee said:
US no better, might be buying some back in tomorrow!golfaddick said:FTSE100 had a bad afternoon. Was at 10350 just before 3pm but then fell over 100 points to finish at 10227.
3 weeks until the end of the competition and anyone between 10000 & 10600 is in with a shout.0 -
Giving our friends in the market are having one of their all too frequent panics, I suspect anyone who has under 10,000 is in with a chance too!golfaddick said:FTSE100 had a bad afternoon. Was at 10350 just before 3pm but then fell over 100 points to finish at 10227.
3 weeks until the end of the competition and anyone between 10000 & 10600 is in with a shout.0 -
Impossible to predict what's going to happen when the Orange man makes things up as he goes along.Fortune 82nd Minute said:
Giving our friends in the market are having one of their all too frequent panics, I suspect anyone who has under 10,000 is in with a chance too!golfaddick said:FTSE100 had a bad afternoon. Was at 10350 just before 3pm but then fell over 100 points to finish at 10227.
3 weeks until the end of the competition and anyone between 10000 & 10600 is in with a shout.
Sorry for being political.1 -
I expect the Tango man would do a better job as President.blackpool72 said:
Impossible to predict what's going to happen when the Orange man makes things up as he goes along.Fortune 82nd Minute said:
Giving our friends in the market are having one of their all too frequent panics, I suspect anyone who has under 10,000 is in with a chance too!golfaddick said:FTSE100 had a bad afternoon. Was at 10350 just before 3pm but then fell over 100 points to finish at 10227.
3 weeks until the end of the competition and anyone between 10000 & 10600 is in with a shout.
Sorry for being political.1 -
I now utterly and totally admit i do not understand the workings of the stock market.
After the bloodbath on Wall Street yesterday I thought the FTSE would plummet today.
I have just looked and it is up 91 points!
Can an expert explain, please?
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My understanding is that a lot of it is the "AI guys" in the USA, rather than something fundamentally impacting markets. Basically a huge tech sector reality check. I think a lot of people are going to be watching the SpaceX launch tomorrow...Fortune 82nd Minute said:I now utterly and totally admit i do not understand the workings of the stock market.
After the bloodbath on Wall Street yesterday I thought the FTSE would plummet today.
I have just looked and it is up 91 points!
Can an expert explain, please?
A lot of things cause ripples, most of the FTSE 100 is isolated from major AI industry shocks.
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I chickened out of buying SpaceX shares in the IPO tomorrow
Going to market at £135 per share and I cancelled my order this morning as I think there is enough ill-feeling towards Elon Musk for some fuckery to occur. My objective view is SpaceX are doing some unbelievably innovative technology advances that will spawn things that will improve human life. I'm going to be an interested spectator now though1 -
Sponsored links:
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The FTSE is very "old school" and contains very little in the way of tech stocks (probably none). However, it is very weighted towards Oil, Mining and Banks (the latter being buoyed by overnight gains in the Far East).Fortune 82nd Minute said:I now utterly and totally admit i do not understand the workings of the stock market.
After the bloodbath on Wall Street yesterday I thought the FTSE would plummet today.
I have just looked and it is up 91 points!
Can an expert explain, please?
Also, UK companies pay good dividends & often the 100 is buoyed by this alone.
And then there is other company news that doesn't make the headlines, such as Fraser's takeover approach for Hugo Boss.
All this is why I always bang on about diversification - not just between stocks & bonds, but also between countries. The World Index is almost 70% US but I wouldnt have more than 25% exposure to America.2 -
That is something I have learned. I thought I was diversified but I was diversified mainly within the UK.golfaddick said:
The FTSE is very "old school" and contains very little in the way of tech stocks (probably none). However, it is very weighted towards Oil, Mining and Banks (the latter being buoyed by overnight gains in the Far East).Fortune 82nd Minute said:I now utterly and totally admit i do not understand the workings of the stock market.
After the bloodbath on Wall Street yesterday I thought the FTSE would plummet today.
I have just looked and it is up 91 points!
Can an expert explain, please?
Also, UK companies pay good dividends & often the 100 is buoyed by this alone.
And then there is other company news that doesn't make the headlines, such as Fraser's takeover approach for Hugo Boss.
All this is why I always bang on about diversification - not just between stocks & bonds, but also between countries. The World Index is almost 70% US but I wouldnt have more than 25% exposure to America.
Took an IFA to show me what actual portfolio diversification is and another lesson I failed to learn of my own volition. One I should have picked up really
By the time I retire I might have learned enough of these lessons to know what I'm talking about0 -
Same here 🤣🤣🤣🤣Carter said:
That is something I have learned. I thought I was diversified but I was diversified mainly within the UK.golfaddick said:
The FTSE is very "old school" and contains very little in the way of tech stocks (probably none). However, it is very weighted towards Oil, Mining and Banks (the latter being buoyed by overnight gains in the Far East).Fortune 82nd Minute said:I now utterly and totally admit i do not understand the workings of the stock market.
After the bloodbath on Wall Street yesterday I thought the FTSE would plummet today.
I have just looked and it is up 91 points!
Can an expert explain, please?
Also, UK companies pay good dividends & often the 100 is buoyed by this alone.
And then there is other company news that doesn't make the headlines, such as Fraser's takeover approach for Hugo Boss.
All this is why I always bang on about diversification - not just between stocks & bonds, but also between countries. The World Index is almost 70% US but I wouldnt have more than 25% exposure to America.
Took an IFA to show me what actual portfolio diversification is and another lesson I failed to learn of my own volition. One I should have picked up really
By the time I retire I might have learned enough of these lessons to know what I'm talking about4 -
Oh look, a bombing threat has been withdrawn and a peace deal is about to be signed. Or is someone and his cronies just creating a selling opportunity before hostilities resume over the weekend?2
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The US markets certainly liked the news as they were all up 2% mid afternoon before falling back to finish around 1.75% ahead (Dow and S&P). The Nasdaq was up over 2% and could go a lot higher tomorrow once SpaceX launches.IdleHans said:Oh look, a bombing threat has been withdrawn and a peace deal is about to be signed. Or is someone and his cronies just creating a selling opportunity before hostilities resume over the weekend?0
